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(EST-1812) Ten Cost Estimating Observations

Primary Author: Mr Joe Kabeiseman

Audience Focus: Basic
Application Type: Application
Venue: 2015 AACE International Annual Meeting, Las Vegas, NV, USA

Abstract: Cost estimating is a unique science that blends statistics, engineering, and business. Experience with numerous large projects has allowed for the development of some fundamental and critical observations, some of which have been learned the hard way.

The need for a 'good' cost estimate to support a major project is often overlooked. Not doing a cost estimate properly can lead to misallocation of scarce funds, taking on too many and unknown risks, and missing the opportunity to apply lessons learned. Project managers and corporate leadership need solid information to make informed decisions.

This paper will review some commonly held misconceptions regarding cost estimates and provide insight into some "dos" and "don’ts." Additionally, some real life lessons learned will be discussed to demonstrate how cost estimates provide management with actionable information.